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Uncertain outlook, higher debt to keep Ashok Leyland stock under pressure

The company lost 200 basis points market share in M&HCVs in FY20

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Given the weak demand environment, higher debt and market share losses in the core heavy duty trucks, the risks of investment in the country’s second largest truck maker are high.

Ram Prasad Sahu

3 min read Last Updated : Jun 26 2020 | 3:58 PM IST

The Ashok Leyland stock has been trading weak, shedding a per cent on muted results, rise in debt and weak near-term outlook. Pegged back by a sluggish economy, transition to BS-VI emission standards and loss of sales in March, volumes in the March quarter fell a steep 57 per cent y-o-y. In addition to the sharp fall in volumes, the company lost 200 basis points market share in FY20 in the medium and heavy commercial vehicles to 31.8 per cent.

While revenues were lower led by volume fall, realisations on a sequential basis were higher. The company indicated there was a

Topics : Ashok Leyland

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